FINANCE (PRINCIPLES)

Assignment- Part One, Finance (Principles)





Question 1

(a) Theresa green will need to accumulate $ 573,496 in her retirement fund after 15 years. As the retirement fund will last for next 20 years. The following graph shows the present value calculation for the Theresa green.

(b) In order to achieve her goal of saving $ 573,496 in her retirement fund after 15 years she will need to save $ 24638.98 per year.

Question 2

(a) If robin bank invests $500 000 to a charity which is expected to establish annual prize worth $50 000, it is expected that a rate of 5% the annual prize can successfully operate for the next 16 years.

(b) If robin bank invests $500 000 to a charity which is expected to establish annual prize worth $50 000, it is expected that a rate of 5%, $ 49,476.07 will be the bank prize in the final year.

(c) If robin bank invests $500 000 to a charity which is expected to establish annual prize worth $50 000, it is expected that a rate of 5% and if the prize continues forever, $ 30, 000 will the final amount that can be regarded as an annual prize amount.

Question 3

The effective annual rate will be About 12.5%. The Lee Kee Boot Company need to earn an effective interest of about 12.5% in order to make up the immediate discount of 2%.

The calculation can be shown belowEffective annual rate = 2%= 0.125* 60/365

Question 4

(a) Jo kings investment will be worth $ 8,847 at the end if she does an investment of $8,000.

(b) Rick O'Shea total amount will be worth $ 10,572 if ricks invest $ 8000 for about three months if rick arranges payments of monthly interests which will be paid into a non bearing account.

Question 5

 In the financial environment ...